PS Business Parks (PSBXP) 10-Q 2009 Q2 Quarterly report

PS BUSINESS PARKS, INC.

EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2009		2008		2009			2008
Net income	$	24,325	$	20,771	$	46,376		$	40,429
Interest expense		881		990		1,811			1,983
Earnings from operations available to cover fixed charges	$	25,206	$	21,761	$	48,187		$	42,412
Fixed charges	$	881	$	990	$	1,811		$	1,983
Preferred stock dividends		11,155		12,757		(4,871	)		25,513
Preferred partnership distributions		1,381		1,752		(5,333	)		3,504
Combined fixed charges and preferred distributions	$	13,417	$	15,499	$	(8,393	)	$	31,000
Ratio of earnings from operations to fixed charges		28.6		22.0		26.6			21.4
Ratio of earnings from operations to combined fixed charges and preferred distributions		1.9		1.4		(2	)		1.4

	For the Years Ended December 31,
	2008		2007		2006		2005		2004
Income from continuing operations	$	85,347	$	81,675	$	79,205	$	75,936	$	71,349
Interest expense		3,952		4,130		2,575		1,330		3,054
Earnings from continuing operations available to cover fixed charges	$	89,299	$	85,805	$	81,780	$	77,266	$	74,403
Fixed charges(1)	$	3,952	$	4,130	$	2,575	$	1,330	$	3,054
Preferred stock dividends		46,630		50,937		47,933		43,011		33,020
Preferred partnership distributions		7,007		6,854		11,155		10,651		20,245
Combined fixed charges and preferred distributions	$	57,589	$	61,921	$	61,663	$	54,992	$	56,319
Ratio of earnings from continuing operations to fixed charges		22.6		20.8		31.8		58.1		24.4
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.6		1.4		1.3		1.4		1.3

(1)	Fixed charges include interest expense.
(2)	Not meaningful as combined fixed charges and preferred stock dividends are negative.

PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)

Supplemental Disclosure of Ratio of Funds from Operations (“FFO”) to Fixed Charges:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2009		2008		2009			2008
FFO	$	31,713	$	31,382	$	98,895		$	61,979
Interest expense		881		990		1,811			1,983
Net income allocable to noncontrolling interests — preferred units		1,381		1,752		(5,333	)		3,504
Preferred stock dividends		11,155		12,757		(4,871	)		25,513
FFO available to cover fixed charges	$	45,130	$	46,881	$	90,502		$	92,979
Fixed charges(1)	$	881	$	990	$	1,811		$	1,983
Preferred stock dividends(2)		11,155		12,757		22,351			25,513
Preferred partnership distributions(2)		1,381		1,752		3,084			3,504
Combined fixed charges and preferred distributions paid	$	13,417	$	15,499	$	27,246		$	31,000
Ratio of adjusted FFO to fixed charges		51.2		47.4		50.0			46.9
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.4		3.0		3.3			3.0

	For the Years Ended December 31,
	2008		2007		2006		2005		2004
FFO	$	131,558	$	122,405	$	106,235	$	102,608	$	97,340
Interest expense		3,952		4,130		2,575		1,330		3,054
Net income allocable to noncontrolling interests — preferred units		7,007		6,854		11,155		10,651		20,245
Preferred stock dividends		46,630		50,937		47,933		43,011		33,020
FFO available to cover fixed charges	$	189,147	$	184,326	$	167,898	$	157,600	$	153,659
Fixed charges(1)	$	3,952	$	4,130	$	2,575	$	1,330	$	3,054
Preferred stock dividends(2)		50,858		50,937		44,553		43,011		31,154
Preferred partnership distributions(2)		7,007		6,854		9,789		10,350		17,106
Combined fixed charges and preferred distributions paid	$	61,817	$	61,921	$	56,917	$	54,691	$	51,314
Ratio of adjusted FFO to fixed charges		47.9		44.6		65.2		118.5		50.3
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.1		3.0		2.9		2.9		3.0

(1)	Fixed charges include interest expense.
(2)	Excludes Emerging Issues Task Force Topic D-42 distributions.